Ladies and gentlemen, good afternoon. My name is Mai. I'll be your conference operator for today. At this time, I would like to welcome everyone to the ChargePoint Second Quarter Fiscal 2022 Earnings Conference Call and Webcast. All participants' lines have been placed in listen-only mode to prevent any background noise. After the speakers' remarks, there'll be a question and answer session. I would now like to turn the call over to Patrick Hamer, ChargePoint's Vice President, Capital Markets and Investor Relations. Patrick, please go ahead. Good afternoon, and thank you for joining us on today's conference call to discuss ChargePoint's second quarter of fiscal 2022. This call is being broadcast over the web and can be accessed on the Investors section of our website at investors.chargepoint.com. With me on today's call are Pasquale Romano, our President, Chief Executive Officer, and Rex Jackson, our Chief Financial Officer. This afternoon, we issued our press release announcing results for the second quarter of fiscal 2022, ended July 31st, 2021, which can be found on our website. We'd like to remind you that during the conference call, management will be making forward-looking statements, including our fiscal third quarter and full year 2022 outlook and our expected investment and growth initiatives. These forward-looking statements involve risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from our expectations. These forward-looking statements apply as of today, and we undertake no obligation to update these statements after the call. For a more detailed description of factors that could cause actual results to differ, please refer to our Form 10-Q filed with the SEC on June 11th, 2021, and our earnings release posted today on our website and filed with the SEC on Form 8-K. Please note that certain financial measures we use on this call are non-GAAP. We reconcile these non-GAAP financial measures to GAAP financial measures for the current quarter in our earnings release and for our historical periods in our investor presentation posted on the Investors section of our website. Finally, we'll be posting the transcript of our call today to our investor relations website under the Quarterly Results section. With that, I'll turn the call over to Pasquale. Thanks, Pat, and thanks to all for your interest in ChargePoint and joining us for our second quarter earnings call. I'll provide a business update to give you some perspective before turning the call over to Rex for financials and an update of our guidance reflecting our revenue momentum. We are pleased to share more about the execution against our plan and our strong quarter for ChargePoint. The results from this quarter can be described with one word: scale. Scale across our three verticals, and scale in both North America and Europe. We are a larger company than we were pre-COVID and growing more quickly. This quarter, from both a quarter-over-quarter and year-over-year perspective, exceeds revenue growth rates from the quarter that ended on July of 2019. We had strong commercial execution as businesses of all types continue to invest in EV charging for their customers, employees, and visitors. Interest in EV charging solutions from fleet operators continues to be high. In June, we announced the industry's most comprehensive fleet charging portfolio. Earlier this month, we announced the acquisition of ViriCiti, a leading fleet vehicle management provider. We expect the addition of team, customers, and technology from this acquisition to further strengthen our reach in eBus and commercial fleet. In residential, demand for home charging continues to be strong. Our ability to serve all types of residential settings is a differentiator. From a geographical perspective, our North American execution remains strong as businesses continue to recover from the effects of COVID. Europe is growing quickly. Our activated port count is up 44% in Europe for the first half of the year versus BloombergNEF European public connector growth of 13% over the same period. We expect our position in Europe will expand meaningfully following the close of the acquisition of has·to·be, post-regulatory approval, with the addition of their networked ports under management position added to our existing position. has·to·be has a talented team, robust technology, and impressive base of customers, including Arval, Audi, GP JOULE, Ionity, and Porsche, just to name a few. Before I jump into the business, I'll share a few comments on the market tailwind supporting electrification more broadly. As we have said, ChargePoint's success is directly tied to the arrival of electric vehicles. BloombergNEF published its electric vehicle outlook in June, which was the first major increase to their outlook in five years. Sales of EVs accelerated in North America and Europe in the first half of 2021. According to BNEF, North America EV sales were up 97% year-over-year for the first half, and European EV sales were up 153%. We are witnessing more vehicles coming to market in exciting form factors for a broad array of use cases. We continue to test new vehicle models that run the gamut of passenger fleet and transit in our state-of-the-art test facility in Campbell, California. Turning to policy, much continues to evolve. On vehicle and emissions policies, President Biden issued an executive order calling for half of all new vehicles sold to be zero emission by 2030. The Trudeau administration set a goal of 100% zero emission vehicle sales by 2035, and the EU Fit for 55 package announced in July provides the sectoral policy tools to meet the 55% emission reduction ambition by 2030. It's an effective mechanism to hasten the transition to BEVs. This collection of efforts has the support of many major automakers. It helps create category awareness, and we expect the pace of electrification to continue to accelerate. We are also seeing unprecedented progress in infrastructure funding. In the U.S., we were pleased to see the Senate include $77.5 billion to expand charging in the recently passed Bipartisan Infrastructure Bill. The Speaker of the House has committed to voting on this bill by September 27th. The Senate has also passed a $3.5 trillion budget framework, which is backed by the President, and includes instructions for lawmakers around changes in the tax code to make the President EV goal more attainable. The budget framework was adopted by the House last week. We are closely tracking the drafting of this legislation and other actions in Congress with potential incentives for EV charging for communities and fleet. States play an important part in infrastructure funding, independently and in crafting mechanisms for the disbursement of federal funds. California is a leader and an influential market. The passing of a state budget that included up to $3.9 billion for zero-emission vehicles and charging incentives over the next three years will support continued infrastructure build-out. We believe we are well-positioned to enable our customers to leverage public funding in addition to ongoing private investment. Our teams have more than a decade of grants management experience, having worked with federal agencies, regional governments, and local partners to successfully build charging to support communities and connect corridors. Turning to our verticals, first, let's look at what's happening in commercial. It enjoyed its best quarter yet with sequential billings growth of over 46% and year-over-year billings growth of over 90% from the same period last year. As a technology company with software at our core, we are pleased to report subscription revenue for the quarter grew 12% from the first quarter and 23% year-over-year. We finished the quarter with approximately 118,000 active ports on our network, an increase of about 6,000 ports sequentially. This includes over 5,400 in Europe, up from over 4,700 ports last quarter, not including the approximately 40,000 ports to be integrated on the close of the has·to·be acquisition. Exciting deployments with auto dealerships, both North American and European, as well as fueling and convenience locations like Kum & Go, led to a record quarter for shipments of DC fast ports. The total fast charge ports in our network grew to over 3,700 as of quarter end. We continue to work with the industry to enable drivers to roam across networks in North America and Europe. This quarter, we crossed over 200,000 roaming ports accessible to drivers using ChargePoint. In fleet, we had a record quarter with growth of 187% year-over-year from a billings perspective. We believe fleet represents an enormous opportunity for ChargePoint, and we are seeing activity across the vertical, including delivery and logistics, transit, and work vehicle fleets. RFP activity is widespread. In June, we successfully unveiled what we believe is the industry's most comprehensive charging portfolio that was designed with our fleet management software at its core to ensure cost-effective operational readiness for fleets of all types and sizes. The recently closed ViriCiti acquisition extends existing ChargePoint functionality with direct vehicle data, enabling additional functionality, including battery health monitoring, OEM-agnostic telematics, vehicle maintenance support, and vehicle operations data. Fleet managers are focused on integrated vehicle and charging visibility, access, and control. We believe that the combined offerings of ChargePoint and ViriCiti will be a force in this space. In the residential vertical, our strategy to serve all needs is paying off. These include single-family residences, apartments and condominiums, and employers who offer electric vehicles bundled with home charging made available through leasing companies. Crossing over from the fleet vertical, employers requiring employees to take work vehicles home overnight use our home charging services that enable fuel cost reimbursement for overnight charging. Q2 residential billings were very strong, up over 79% year-over-year and 43% sequentially. We continue to offer seamless access to EV charging with integrations into leading consumer platforms. This quarter, with our strategic partner, Mercedes-Benz, we announced a new benchmark for EV charging in North America, with ChargePoint powering a Mercedes me Charge vehicle ecosystem to be launched with the all-new EQS luxury sedan and included with all EQ future mobility products from Mercedes-Benz. With our software, drivers can seamlessly find, navigate, connect, and securely pay for charging in the vehicle and from their Mercedes me app across the ChargePoint network and roaming partners, including charging in access-controlled environments like workplaces, shopping malls, and hotels. Our customer growth continued in the second quarter, building off a strong start to the year, where we eclipsed 5,000 customers. We continue to see a steady re-buy rate of well over 60%. We are adding customers quickly while growing with existing customers rapidly. ChargePoint continues to invest heavily in our team. We finished the quarter with over 1,000 employees. As a technology company, we are especially proud of our engineering and technical staff that tops more than 500, not including the capable team at ViriCiti and the additional expected team following the close of the has·to·be acquisition. The teams managing our supply chain have navigated a dynamic environment. Rex will give you more color on margins and how ChargePoint is navigating through this global headwind, including responding to the demand for our product in the second quarter that exceeded our forecast. Before turning it to Rex, I'd like to reiterate that ChargePoint's scaling of the new fueling network is generating notable environmental impact, having enabled over three billion electric miles driven and avoiding 462,000 metric tons of greenhouse gases and roughly 120 million gallons of gasoline by the end of Q2. Rex, over to you for financials. Thanks, Pasquale. Good afternoon, everyone. First, my comments are non-GAAP, where we principally exclude stock-based compensation and the effect of the valuation of our stock warrants. This quarter, we also exclude legal expenses associated with our secondary offering completed in July, our ViriCiti acquisition completed in August, and our pending acquisition of has·to·be we announced in July and expect to close later this calendar year. For a reconciliation of these non-GAAP results to GAAP, please see our earnings release. Second, after a quick review of our results, I will provide revenue estimates for fiscal Q3 and for the fiscal year. Third, consistent with our March and June calls, as you can see in our earnings release, we report revenue along three lines: Networked Charging Systems, subscriptions, and other. Networked Charging Systems represents our hardware, all sold with our cloud services solutions. Subscriptions includes those cloud services, our Assure warranties, and our ChargePoint as a Service offerings where we bundle our solutions into a recurring subscription. Other consists of energy credits, professional services, and certain non-material revenue streams. Q2 revenue was $56 million, up 61% year-over-year, well above the high end of our previously announced guidance range of $46 million-$51 million, and up 39% sequentially. The top-line success was across all verticals and geographies. Networked Charging Systems at $41 million was 73% of total revenue for the quarter and grew 91% year-on-year and 53% sequentially. Subscription revenue at $12 million was 22% of total revenue and up 23% year-on-year and 12% sequentially. Subscription growth trails Networked Charging Systems revenue growth for three primary reasons. First, mix, as both DC Networked Charging Systems and home have a lower ratio of subscription to hardware revenue than our overall average. Second, our quarterly sales are typically strongest in the third month of each quarter, which amplifies Networked Charging Systems revenue taken at shipment versus ratably recognized subscriptions. Third, for most of our solutions, we begin revenue for subscriptions at a fixed time after the associated hardware shipment to accommodate installations. We are particularly pleased that our deferred revenue from our subscriptions, representing recurring revenue from existing customer commitments and payments, hit $100 million this quarter for the first time. Other revenue at $3 million and 6% of total revenue decreased 16% year-on-year, which is lower utilization-based energy credits that increased 10% sequentially. We look at verticals from a billings perspective. Billings by vertical for Q2 were commercial 75%, fleet 12%, residential 11%, and other 3%, consistent with billings by percentage for Q1. We are very pleased to see strong growth, total billings up 87% year-on-year and 42% sequentially on consistent mix, demonstrating strength across all our verticals. From a geographic perspective, Q2 revenue from North America was 91% and Europe was 9%, consistent with recent breakdowns by geography. Europe held its percentage in a high-growth quarter with its best quarter ever at $5 million in total revenue and up 38% year-on-year and 42% sequentially. Our customer rebuy rate, a cornerstone of our business model and reflecting our land and expand strategy, remained over 60% of total billings, a compelling indicator since we add hundreds of new commercial customers per quarter. From a scale perspective, we also continued our channel success with approximately 62% of our business driven by our channel partners and continuing to add partners at a strong rate. Turning to gross margin, non-GAAP gross margin for Q2 was 23%, flat to Q1. Continued improvements in our costs of goods sold and renewed strength in commercial offset supply chain challenges, particularly incremental logistics costs, which had an approximately three-point negative impact on gross margin for the quarter. non-GAAP operating expenses for Q2 were $53 million, a year-over-year increase of 70% compared to a COVID-impacted prior year quarter, and a sequential increase of 13%. We continue to invest heavily in sales and marketing to support our land and expand model in North America and Europe, in R&D and operations to support significant new product development and a rapidly expanding customer base, G&A expenses to support continued growth in the business and increased public company-related expenses. Looking at cash, we finished the quarter with approximately $618 million, with approximately $44 million in from warrant exercises resulting from the redemption of our public warrants, offsetting cash used by operations. We have funded in Q3 thus far approximately $80 million of our $90 million acquisition of ViriCiti, and on completion of regulatory review, we expect to fund the cash component of the has·to·be acquisition at approximately $135 million, potentially also in Q3. As a reminder, this acquisition is a blend of cash and stock, I'll cover the stock in a minute. Pasquale spoke about the strategic and operating merits of both transactions. From a financial perspective, we expect these two acquisitions combined to contribute approximately $4 million in total revenue in Q4, to be generally accretive to gross margin, to add approximately $8 million-$10 million in combined operating expenses in Q4, and to provide synergistic sales opportunities for both our hardware and software. Our new guidance, which I'll provide shortly, reflects ViriCiti's expected contributions since the August close and assumes has·to·be closes in late Q3. I do not expect to provide future breakouts for these acquisitions, but wanted to give you a sense of initial sizing as we integrate them into our operations. Regarding share counts, during the quarter, we issued 8.8 million shares of common stock in connection with the final SPAC merger earn-out, 4.4 million shares of common stock in connection with warrant exercises, and 3.9 million shares under our employee stock plans. We finished the quarter with 322 million shares outstanding. After giving effect to the acquisition of has·to·be, we expect to have roughly 328 million shares outstanding. Finally, we completed an underwritten secondary offering in July for 13.8 million outstanding shares held by existing stockholders in order to improve our flow and broaden our stockholder roster. ChargePoint offered no primary shares in this transaction. Turning now to guidance. As Pat mentioned, demand for our solutions in Q2 outstripped our expectations and production ramp. We continue to watch, as we all do, the COVID situation, including its implications for ongoing supply chain challenges and heightened logistics costs. Despite these factors, we turned in a strong first half performance and are excited about our revenue momentum going into the second half. For fiscal Q3, we expect total revenue of $60 million-$65 million, at midpoint, an increase of 72% versus Q3 of last year. A sequential increase of over 11%. For the fiscal year, we are taking our revenue guidance up 15% from $195 million-$205 million, to $225 million-$235 million, at the new midpoint, representing a 57% increase year-over-year. With that, I'll turn the call back to Pat. We'd like to thank you again for your interest in ChargePoint. We are very proud of our quarter defined by broad and accelerating scale in North America and Europe across each of our three verticals. We believe our technology, capital-light business model, and market share position us well to continue to execute in this very exciting market. We will now begin the QA session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star, one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate the queue. The first question is from Gabe Daoud with Cowen. Please proceed. Hey, good afternoon, everyone. I was hoping we could maybe just start with the financials for a bit. Just noticed there's a margin degradation on the subscription line quarter-over-quarter. Looked like it was only 35% in 2Q. I think it had been closer to 50% in prior quarters. Is there anything that, Rex, you can maybe point to there as to what drove that degradation sequentially? As you know, in the subscription line, and you're talking about just the full line, yeah. The two things that we charge against that line from a COGS perspective are the call center costs to where we're supporting hosts and drivers, and then we also, clearly, when you have Assure warranties in your favor, or, sorry, in your contract, any cost to repair that we have go against that. I would say there's nothing unusual in the quarter that would suggest something that's a long-term trend in that regard. I think it's just an anomaly. Thank you. Got it. Thanks, Rex. Yeah I guess as a follow-up, could you maybe just talk a little bit about the supply chain situation currently? Obviously, you guys continue to do a nice job offsetting an increase in logistical costs. Just curious what you guys are anticipating moving throughout the rest of this year. That's a great question. In Q2, I'd say we did a nice job managing it. As you could probably tell by looking at the balance sheet, we're not able to build inventory, so we're very much procuring and shipping. We did run into a little bit of more demand than we could meet, so there's some shipments that didn't happen due to supply chain. The biggest issue is mostly higher logistics costs, but to a lesser degree, there are some component shortages out in the market. Again, I think we managed that really well. It hit us three points in Q2. Without that, we would've hit 26% gross margin, showing some nice progression from Q1. If you look at the second half of the year, we've got a pretty steep ramp for Q2, Q3 from a revenue perspective. We're putting an enormous amount of pressure on our operations team and our supply chain partners and CMs to meet those numbers. In our guidance, we've tried to take all of that into account. I do think there's going to be X numbers of points, mid to low single digits, pressure on us from a gross margin standpoint as we bang through that. I will just tell you, and Pat can back me up on this, because of our model, which is land and expand, get the customer, we're pushing top line to make sure we capture Capture the territories or the customers as we go. That's where the emphasis is, and so if we have to make that trade-off, we will. There's one more point on that. Because every port that we sell is associated with a subscription to software that's very low churn, the way we look at the overall contribution from a port, from a margin perspective, is over the lifetime of that port. Because the churn rate is so low, the software revenue accumulates nicely over the years. It's imperative that we ship as many ports as we humanly possibly can. Biasing our supply chain activities to making sure that we can not only acquire new customers, but expand within the footprint that we have, I think we get it back in spades over the years. We just have to meet our customer demands right now. Understood. That makes sense. Thanks, Pasquale and Rex. Just one more. Now with ViriCiti in the fold, could you maybe just talk about conversations with fleet operators? Obviously, there's plenty of competition within that channel. Could you maybe just highlight how impactful having the vehicle telematics is from a potential businessman perspective? Maybe also just talk a little bit about some of ChargePoint's competitive advantages on the software side for fleets versus some of your competitors. Well, from our perspective, especially given that it's very early innings in fleet, and fleet operators don't have a tremendous amount of experience with electrification, to say the least, the completeness of a portfolio and the pre-integration, we think is a huge differentiator in being able to establish ourselves early with these fleet customers as they convert their fleets from fossil fuels to electricity. Pursuant to that, what we're investing in, both organically and with the ViriCiti acquisition inorganically, is having as large a portfolio as possible. With respect to ViriCiti in particular, the functionalities that they add on the vehicle side extends beyond just raw telematics. It includes higher-level functionality, like battery health monitoring, and other driver vehicle support functions and reporting functions that they have. Where that comes into play is in specific sub-verticals within the fleet space. Very large fleets typically will already have a telematics provider that they're working with, and we're pre-integrated with all of the usual suspects there, or continuing to integrate with a larger set. For the long-tail fleets, that is often not the case, and for eBus, that is often not the case. Having the specific vehicle telematic offering in the portfolio really reduces the integration complexity for someone that's in one of the segments that hasn't currently picked a partner, or that like the way you would purchase potentially an ERP every plugin for that ERP system from the ERP system vendor, but you like having the fact that some customers have the ability to pick and choose from a basket of things. From a differentiation perspective, it's the completeness of offering, check. We think we've got a good one there and are continuing to invest. Most importantly, I'll draw your attention to the number of this very simple. I'll pause there. Really helpful. Thanks, guys. Yeah. Hey, Gabe. one thing, this is Rex again. On your first question, you caught me a little flat-footed there until it dawned on me that you were looking at GAAP numbers, not non-GAAP numbers. The driver on that from a GAAP perspective is fundamentally stock-based comp, which is one new thing for the company. Obviously, since we've gone public. If you're looking at it on a non-GAAP basis, the software margin's actually up one point sequentially. Sorry I didn't. Okay Grok that with you when you asked the question. No, no worries. Understood. Thank you. The $2 million? The $2 million. Without stock-based comp, subscription gross margin went up. Okay. Got it. Got it. Thanks, guys. Okay. Thank you, Mr. Daoud. Ladies and gentlemen, please limit yourself to two questions at a time. The next question is from Colin Rusch with Oppenheimer. Please proceed. From the existing business. Colin, this is Rex. Our estimate for Q4 was that the acquisitions would contribute approximately $4 million, the balance in Q4 would be us. For Q3, we have ViriCiti for most of the quarter, hope to have has·to·be in quarter. Consider it baked in, but we're sort of assuming in our view of the world that you should focus on the contribution in Q4. Okay. That's agreeable. Just in terms of the pipeline activity, can you speak to the number of potential targets you're looking at and how that's grown year-over-year in terms of the land and expand model, getting any of those new customers in? You started with acquisitions, then you went to customer count? The customer count. Acquisitions is done. Yeah. Yeah, the second question is really about the pipeline and how that's grown. I got you. Year-over-year for first-time buyers of products. Yeah. On the acquisition front, super happy to have announced the two that we did. I can tell you, I think we followed beautifully what we as a management team insisted on, which is pick the two you like and make sure you get them. I think the question is, are we looking at that going forward, doing some additional or no? No, I think the question, Rex. No, it's not about acquisitions at all. It's about new customers. Oh, okay. Yeah. I'm sorry. I was thrown by the acquisition questions. Pipeline from a customer growth question. From a customer growth perspective, we had a stellar quarter in Q2. We're well into it, well past the number that we've had out in the market before. As you know, we are investing heavily in sales and marketing to make sure that we keep that trend going. I think we said probably six months ago that we're around 500 new customers per quarter. We're handily beating that now. That's organic, right? Obviously the two acquisitions bring some additional customers, particularly in Europe and particularly in the EVaaS segment that we did not have. Our organic growth on the customer side is powerful. Okay, thanks, guys. That's a real tough one. Capital Partners, please proceed. Good evening. Today, I had the opportunity to look very closely at your and I have to say, I'm really impressed, particularly from the different pieces, the 12 components in your DC conversion tower, the eight components in your that there may be an opportunity from a margin stand ramp in volume. Can you maybe talk us through whether or these and the simplicity of these products will be quarters? There were some questions is the overall certification status of these new fleet products. You were at the ACT Expo. Is that where you saw them? Yes. What's core to the strategy here is designing from very few sub-components. If you look across our product line, you'll see the same sub-components used in multiple products. The reason for that is twofold. One is exactly what you're alluding to. It's long-term manufacturing efficiency, and volume scale to yield a favorable cost structure there. There's a second factor, which is in all mission-critical businesses, fleet or passenger car, sparing capacity for self-maintainers or our own ChargePoint Assure services are essentially our warranty services. Maintaining a simple inventory management system to enable rapid repair and very high uptime is the second reason. This is one of the few times in products where you get both a cost structure and a few components and a reliability and uptime kicker as well. Our intent is to continue to push the volume, and we expect that as we scale, and I believe Rex has mentioned on several earnings calls, that's the underpinning of what we've talked about in terms of our margin recovery curve, getting us back to previous historical levels on the margin. Excellent. My next question's about products for Europe. My understanding also from looking at the products closely is that there's an opportunity for a very small number of components to be changed, versus the designs that are now starting to ship into North America. Can you maybe clarify for us whether or not this simplicity, this design approach that you've taken maybe accelerates the margin accretion as you look to serve Europe a lot more aggressively for growth over the next number of quarters? We've taken a design approach across the board that wherever possible products are being designed to be world products, either through simple final configuration steps in the factory or out-of-the-box world products. The reason for that is exactly what you're alluding to, which is to combine scale, excuse me, between the two continents to drive not only supply chain efficiency, but common practices for repair and reliability. The fast charge products, for example, that you saw at ACT, and even some of the AC products, I don't remember exactly which ones we had exhibited there. The fast charge products are world products. They are designed to work everywhere. The AC products for fleet in particular, and for Europe, are designed at their core to operate globally. Thank you. If I could squeeze another one in. Workplace has been a very important market for ChargePoint over the last number of years. It's a particular point of strength for the company, and a lot of us are looking at our teams being back in the office, and know that many other companies have similar policies. Can you maybe comment about recent conversations with your important customers in workplace, whether or not it's fair to expect some building of the momentum there, maybe a return to the really impressive growth that you saw over the last couple of years? The remarks that we made earlier before the Q&A, we pointed out that our business volume is now above pre-COVID levels, and our growth rate is above pre-COVID levels, but COVID's not over yet. What that says is that our modeling assumptions in that cars drive everything, and in our revenue model, cars do drive everything. It's completely an attach rate model as to how we model our revenue forecasting. Over the last three quarters, I think we've done a pretty good job, even in a COVID environment, forecasting our revenue. What we have seen is a mix shift due to COVID, but the overall growth in the space has been more than compensated for by the increased arrival rate in cars relative to the pre-COVID levels that we have seen. With all of that said, as workplace returns, it's all upside. Understood. Well, congratulations on the strong quarter. I'll jump back in the queue. Thank you, Mr. Irwin. The next question is from Shreyas Patil with Wolfe Research. Please proceed. Thank you. You mentioned earlier that you're having difficulty in meeting demand, and that was an issue in the quarter. I just wanted to see how we should think about the ability to increase manufacturing if this were to continue for the next, let's say, the next few quarters. Is there any way to think about any upside potential to capacity for ChargePoint? This is not a manufacturing capacity-driven problem on the supply chain side for us. Our Contract Manufacturers can deploy the labor and the capital equipment necessary to build physical product. The issue is the random onset of decommits in the supply chain for components, and our teams with our Contract Manufacturers deep focus on making sure that we exercise every potential source of supply and our engineering team right behind them qualifying second, third, fourth sources in some cases, so we can desensitize the risk. You can't drive it to zero, but desensitize the risk to sudden decommits, where you think you have a source of supply, but suddenly they can't meet shipment into the factory. As you've seen, the numbers are a bit higher than our original forecast, we've been able to scale on the component supply chain on the way in to generally meet that demand, not completely, but to generally meet that demand. The team is working like crazy to put a belt and suspenders in place to drive materials into the factories, where the factory capacity, again, is not the problem, so we can meet the new guidance that we've set for you for the back half of the year. We're working it. We haven't been bitten by it yet. We're experienced enough in these matters to never take our eye off the ball and never advertise to you that we're immune to any problems. Okay. Then I wanted to switch to the fleets side of the business. I think you mentioned 180% growth in the quarter, which is obviously really impressive. As you're thinking about the opportunity, obviously now with ViriCiti, I'm just trying to think through how the competitive landscape evolves here and how ChargePoint's positioned. In particular, we've seen announcements from OEMs that are looking to offer fleet charging as part of their product offering. Ford and then recently GM are two examples. How do you think about the ability to still provide a value-add solution as those OEMs are indicating interest in trying to sell towards their own customers? Yeah. We've addressed this question, I think we got a very similar one on the last earnings call. There are almost no single OEM fleets out there. We're focusing on a solution that isn't tied to any one particular OEM, and that is also broadly open to all of the other business system partners that fleets tend to integrate with, so we can be as pre-integrated as possible. Our focus from a competitive perspective is to not have the customer be the integrator, is to enable as simple integration as possible by being pre-integrated. There's never a perfect science here. That's what we consider to be our differentiator in a big way. I think the OEMs need a default offering, and we applaud that. I think they need to have that. I think most of their customers don't buy from just them. Again, because most fleets are multi-OEM, we don't see that as a negative. Okay. Thanks a lot. Thank you, Mr. Patil. The next question is from David Kelley with Jefferies. Please proceed. Hi. Good afternoon, guys. Thanks for taking my questions. I guess two from my end, and maybe starting with the fleet charging portfolio that you unveiled a couple of months ago. Clearly software-intensive, so maybe if you could walk us through how you're thinking about the longer-term kind of subscription opportunity tied to the software for that product line, that'd be great. It would take more time than we have in this earnings call to give you a full rundown. It's something we'll certainly do as we have more technology-specific days for the analyst community. In brief, the way that you should think about it is that there's software that's proportional to charging ports, which is pretty analogous to our traditional commercial business for passenger cars, when we sell to workplaces or retailers, parking operators, et cetera. Something proportional to keeping a port of charging on the ChargePoint network. Again, not power-orient, not making money on the sale of power, not utilization-dependent, et cetera. There's the additional fleet services for charger scheduling based on needs for next-day routes or next-shift routes. That is billed on a per vehicle basis. Now you can think of a new service above and beyond the charger management services, that can be billed on a per vehicle basis for those kinds of services. There's site-wide energy management services come into play later. You have generally things that are proportional to chargers, proportional to vehicles, and proportional to sites. In the commercial charging domain, it's changing as well, except the proportional to vehicle component in it isn't really as strong because the telematics doesn't play in there. I'll point out one more thing relative to our commercial and our residential business is relevant to fleet. A lot of operators have a take-home component to their fleets. Our residential offerings and our business offerings for leasecos in Europe that provide cars to employees as part of their compensation, that same technology package is being pointed at take-home fleets to enable electricity cost reimbursement when the employee takes the vehicle home and uses their own power, essentially, to charge a vehicle for work purposes. We're seeing a lot of crossover there, and that's the power of being involved in all these verticals, is being in any one vertical leaves you uncovered for the use cases that cross into the other vertical. The last is that being able to offer the en route, in the wild charging capabilities with fuel card integration, so the payment's consolidated, et cetera, is another avenue where our commercial offerings for drivers like you and I, that may drive a vehicle and park at a parking operator or an employer that uses those things. Well, imagine now we can bring that world where fleet drivers can use those services but have integrated billing back to their employer through integration with fuel card providers, et cetera. We're going to keep expanding that leverage into that commercial segment. Really, all these things play together, and that's what's not really apparent yet to a lot of folks that are looking at the space. I'll pause there. Going to be a long answer if I keep going. Okay, no, great. That's super helpful. Really appreciated it. Maybe just to switch gears a bit, a high-level question on ESG and sustainability. This might be a long answer as well, but clearly, we're seeing a broader push in North America. Maybe could you give us a window into the conversations you're having with existing and new customers, how they see charging fitting into their strategy, and could ESG boost, let's call it the longer-term rebuy algorithm for ChargePoint, as we think out several years into the future? Well, it certainly could. I think businesses of all kinds are embracing charging for not only ESG reasons, but it's also good for their employees and good for their customers because driving electric is, in the long term, much more cost-effective than driving on fossil fuels. The car itself has a better cost profile over time and then fuel, well, it's the story there. Obviously, all these companies are now being measured on ESG. It has to factor in. Just the question is, you don't really need any more charging than the cars in the parking lot are driving. We can't make an estimate right now of how much of that is prebaked into our attach rate model or not. We'll understand that as the market continues to unfold. I agree with you. It's certainly a tailwind. The question is how much. Okay. Got it. Thank you. Really appreciate the time. Thank you, Mr. Kelley. The next question is from Vikram Bagri with Needham. Please proceed. Good evening, everyone. I just have two questions. One about near-term profitability and one about long-term outlook and profitability. Rex, you highlighted increase in outlook by BNEF recently, and I believe your long-term outlook was based on their forecast. You've made acquisitions which are margin accretive. How does that change your outlook to achieve profitability, which was fiscal 2025 a few months back? Could you just talk about puts and takes there? In terms of near-term profitability, the initial guidance at the beginning of the year was about 31%. You've mentioned about 3% hit to gross margin this quarter due to supply chain issues. There has been a shift in mix, and the impact of prolonged shutdown due to COVID. Could you also explain the near-term margin outlook using 31% as a base, what the puts and takes are? To the extent you can quantify them that would be helpful. Thank you. Vikram, based on your question, you clearly understand it really well already. What I would say is that for this year, it's absolutely true we are running lighter on gross margin than we would have expected. Though I think we posted a decent number in Q1. We held in Q2 despite some external factors. We're going to bang through the second half of the year and deal with those factors as well. As I said earlier, we are definitely making a commitment to ourselves to drive the top line harder, because land and expand is the ballgame, and so getting customers now is super important. That obviously puts a little pressure, if your margin's not performing, that puts a little pressure on you from a bottom-line perspective. Again, for the long-term health of the business, the top line is everything. Keep in mind, as we acquire customers, we're acquiring customers who become ongoing customers from a software perspective, at an appreciably higher margin versus the initial sale. We don't give the gross margin guidance specifically, but I think qualitatively you could tell that there's a gap between where we thought we were going to be at the beginning of the year and where we are now. As you referenced, mix is a big component of that. If the commercial business turns in additional quarters like it did this quarter, because it came on extremely strong, that's a place where we get a lot of margin power. That can help us a lot. You would need to stay tuned on that. I think you also asked a question about the acquisitions. I think the acquisitions are accretive of gross margin throughout. They will initially be more in terms of OpEx than the gross margin contributed, but I think that flips in the not-too-distant future. There are also very positive benefits between stuff we do that drives more sales of the software we just acquired and stuff they do with the software we just acquired that drives more business from the ChargePoint side. As that synergy kicks in, I think we should have a pretty good year with those two acquisitions next year. Lastly, from a profitability perspective, we've actually talked in terms of calendar 2024. We're turning our models every day. I don't think the acquisitions or our current blending of strategy of going for revenue and addressing gross margin issues is going to meaningfully change that. If we decide that that needs to be pushed out, we'll let you know, but we're not there yet. Thank you. Thank you, Mr. Bagri. The next question is from Itay Michaeli with Citi. Please proceed. Great. Thanks. Hi, everybody. Apologies if I missed it earlier, I did join a bit late. Did you have the gross margin discussion, Rex? As we think about the land and expand model. Is the gross margin higher on incremental ports that are installed at a particular customer? Meaning, is it worth it for you to invest some gross margin initially, as you land them, and then as you expand them, that the incremental margin on that would be higher? Sure. On your first question about the rebuy rate, we're remarkably consistent, north of 60% of our business is rebuys. That held this quarter. It bounces around 63, 67, 61. It has a six in front, and very consistently there. In terms of land and expand in its entirety, because over time, component of the relationship with the customer that helps. I've seen nothing that would suggest that we need to go in less expensive, take a margin hit to secure the customers, and then try to get it back over time. Obviously, we have a number of customers that have a couple thousand ports, pushing 3,000 ports. Obviously, they get benefits in terms of pricing. In terms of the basic model, our competitive situations to take that head up front system. I just want to remind- Yeah Everyone on the call of one thing as well related to that answer. Installation does not go through our books. That is true. Any efficiencies that would happen as the increment gets bigger at a particular customer, because there are economies of scale there, we don't see that because that's not part of our revenue profile. That's true. Got it. That's very helpful. If I could sneak one more in, maybe back to the ESG discussion earlier, do you have a rough sense of what portion of your North America commercial customers give away charging sessions for free, either all the time or at least partially? I don't have that. That number moves around a bit. I don't have that off the top of my head. Workplaces, in general, do not attempt to use their employees as a revenue source. They treat this as an employee benefit. There's been a couple of questions on this call with respect to ESG alignment. The cost structure associated with giving your employee power in a workplace setting is comparable to providing them coffee. It's not very high on the Pareto list of costs with respect to employee benefits on a site. For example, a cafeteria would be far more expensive if it was subsidized than giving an employee EV charging. Also, you're effectively lowering your employee's personal cost structure, because you're enabling them to drive an electric vehicle. The stat, and it's not ours, but the general industry stat is you're six times more likely to buy an electric vehicle if your employer offers EV charging. There's a pretty good indicator there for you when you're thinking around the subject. With respect to retailers in general, they typically, if they set a price, it's at cost recovery, typically. If they set a price at all, a retailer is more using it as a tool to engage a driver in their business. In the future, you'll see more and more integrations with loyalty card programs there to potentially stratify the charging benefits a bit to provide an incentive for you to sign up. There's a healthy amount of charging for charging going on, but I think in general, there's also a very healthy amount of use of charging as an incentive or an employee benefit. Perfect. That's been helpful. Thank you. Thank you, Mr. Itay. The next question is from Matt Summerville with D.A. Davidson. Please proceed. Thanks. Just two quick ones. I was wondering, especially given all the new customer additions you've been talking about, what trends you've been seeing in uptake rates for ChargePoint as a Service and how you'd expect that to scale from here going forward? Sure. We've been running over the last, I don't know, four to five quarters at anywhere from 4% - 7% of our billings. It's focused entirely on our L2 workplace product, we're only just now rolling it out as to other products. When you think about our total billings, it's going to hover in the 4% - 6%, and we were consistent with that in Q2. Looking forward, we're aggressively looking at applying that to our DC products. It's also something that we think is going to be a meaningful component of our fleet business because fleets, like when Frank spoke, and financing too. Multi-Family as well. Multi-Family will be another place. I think the places where we end up as providing things as a service is going to expand nicely over the next couple of three years. It's been very consistent. I think it's already almost there in multi-family. Yeah. We have to true that up a bit, but it's already a subscription-based service for that segment. Got it. Just as a follow-up, your cash burn rate in the quarter improved a bit sequentially. How should we be thinking about that, looking out over the next couple of quarters? Maybe talk about some of the bigger pluses and minuses you would want to make us aware of. Sure. We had a nice matching of effects in Q2 where we generated about $44 million from warrant redemptions in the quarter, which more or less matched the operational cash burn. I think we're going to be in a cash-consuming posture for the foreseeable future. Keep in mind the thing I said earlier about profitability, that still holds. If you look at our current run rates, assume that's going to be consistent over the years, we should be fine from a cash perspective, at least for a few years from now. Clearly, given the comments a minute earlier about when we turn cash flow positive, given the fact that we've done acquisitions, we obviously don't have sufficient cash to get the entire way, and we'll have to keep an eye on that. Got it. Thank you, guys. Yeah. Thank you, Mr. Summerville. The next question is from James West with Evercore. Please proceed. Hey, good afternoon, guys. Good afternoon. First of all, I wanted to ask about something you mentioned right up front, and that's scale. Clearly you're selling the benefits of scale right now. As you outlined, there's a lot of tailwinds in the business, whether that's the EV sales and, of course, many new models of EVs that are coming in the next 18 months, the policy tailwinds, the infrastructure tailwinds. How do you think longer term, not near term with the supply chain, we know the supply chain is in somewhat disarray, which we all know about, but how do you think longer term about how you scale this business and what the risks are, what the opportunities are? Maybe, given that your software is your base, of course, and we think of you more as a software company, maybe that's an easy answer because software's not hard to scale, but maybe the two buckets of software versus, say, systems. I think you're asking absolutely the right question of any company in this space, which is most of the market's in front of us, and we're going to see an acceleration of adoption. How do you deal with that? I'll give you a couple of things to illustrate how we think about it internally. Number one is channel. You have to have a lot of muscle built in a company for a very long time selling through channels, which we do. That's already built into our margin structure, which is very important. You have to have a margin structure. Okay. That survives more than one tier of distribution. You also have to have the training and channel enablement capabilities so your product can be represented for its differentiation. You have to have all of the support capabilities in place to be able to deal with the scale. You have to have the supply chain partners to be able to deal with what is the delivery vehicle for software, the hardware products at the other end, Contract Manufacturers, of which we have multiple that are partners of ours. Not too many, because we obviously don't want to spread ourselves too thin with respect to management bandwidth, but enough times to lay in more manufacturing scale in front of the growth of the company. Lastly, what I'll point out, even though I believe that we will have both in the industry for many years to come, the arrival rate of cars into a geography, net new cars into a geography, that's the real limiter. We are the effectively of the vehicle. Got it. Okay, that's very helpful. If I could maybe ask one more acquisition question, but I'm thinking about company acquisitions you made, obviously. Are there areas that you're still looking at? Are you done for now or putting this on hold as you integrate? How are you guys thinking about M&A? We have a pretty tight lens on that. We assess opportunities on the basis of technology gaps, customer base, which is probably the most important factor is, does it avail ourselves to a broader customer base inorganically? Is the team and culture of the company a good fit for us? Because in an acquisition, you're only as good as how well you can integrate it, and that's a critical thing to have good alignment in the market with the acquisition, the company being acquired. More specifically, in terms of what the kinds of things we're looking into, even though our offerings are very complete, what are the other adjacencies we can add that either develop. Offering that we have that enables us to sell more high-margin software to our existing customer base or to new customers. That's how we think about it. It's a very tight evaluator. We're going to be very measured about how we evaluate things, but that's color on how we think about it. Understood. Very helpful. Thanks, guys. Thank you. Thank you, Mr. West. I will now pass the conference back to the management team for additional remarks. Great questions, and thank you very much for your time. Really, very thoughtful questions. What I'll leave you with is just something that I tell the employees of recent in town halls. It's been an amazing six months for the company. In six months, we've become public this fall, because the first one was right pretty much after we had closed the transaction to take us public. We've announced two acquisitions, closed one of them. We marketed an equity offering for selling shareholders. We've had to deal with the COVID impacts in our supply chain, increased forecasts or increased performance in the market over our forecast. For us, it's been a very exciting start. We're really proud of the accomplishments. I couldn't be more proud of the team here at ChargePoint. I think they deserve all the credit for working tirelessly to get us to this point. We're very optimistic about our positioning for the future. We're going to be very mindful and not get in front of that and really work hard to just continue to expand this business. We're super excited about what the future holds and look very much forward to doing one of these things again in three months, thank you. That concludes the ChargePoint second quarter fiscal 2022 earnings conference call and webcast. Enjoy the rest of your day.